W.W. Grainger (NYSE: GWW) and Gardner Denver Holdings (NYSE:GDI) are both mid-cap industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Valuation & Earnings

This table compares W.W. Grainger and Gardner Denver Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
W.W. Grainger $10.22 billion 0.93 $1.40 billion $8.66 19.01
Gardner Denver Holdings $2.10 billion 2.23 $214.25 million N/A N/A

W.W. Grainger has higher revenue and earnings than Gardner Denver Holdings.

Institutional and Insider Ownership

80.6% of W.W. Grainger shares are owned by institutional investors. Comparatively, 98.5% of Gardner Denver Holdings shares are owned by institutional investors. 9.6% of W.W. Grainger shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares W.W. Grainger and Gardner Denver Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
W.W. Grainger 5.08% 34.03% 11.48%
Gardner Denver Holdings -25.26% -78.62% -13.44%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for W.W. Grainger and Gardner Denver Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
W.W. Grainger 4 9 0 0 1.69
Gardner Denver Holdings 0 1 8 0 2.89

W.W. Grainger currently has a consensus price target of $179.36, suggesting a potential upside of 8.98%. Gardner Denver Holdings has a consensus price target of $27.14, suggesting a potential upside of 13.62%. Given Gardner Denver Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Gardner Denver Holdings is more favorable than W.W. Grainger.

Dividends

W.W. Grainger pays an annual dividend of $5.12 per share and has a dividend yield of 3.1%. Gardner Denver Holdings does not pay a dividend. W.W. Grainger pays out 59.1% of its earnings in the form of a dividend. W.W. Grainger has raised its dividend for 45 consecutive years.

Summary

W.W. Grainger beats Gardner Denver Holdings on 8 of the 14 factors compared between the two stocks.

W.W. Grainger Company Profile

W.W. Grainger, Inc. (Grainger) is a distributor of maintenance, repair and operating (MRO) supplies and other related products and services. The Company offers its products and services to businesses and institutions in the United States and Canada, with presence also in Europe, Asia and Latin America. The Company operates through two segments, which include the United States and Canada. The Company’s business support functions provide coordination and guidance in the areas of accounting and finance, business development, communications and investor relations, compensation and benefits, information systems, health and safety, global supply chain functions, human resources, risk management, internal audit, legal, real estate, security, tax and treasury. The Company’s other businesses also include Zoro Tools, Inc. (Zoro), the single channel online business in the United States, MonotaRO Co. (MonotaRO) in Japan, and operations in Europe, Asia and Latin America.

Gardner Denver Holdings Company Profile

Gardner Denver Holdings, Inc. is a global provider of mission-critical flow control and compression equipments and associated aftermarket parts, consumables and services. The Company operates through three business segments: Industry, Energy and Medical. Industry segment designs, manufactures, markets and services a range of air compression, vacuum and blower products. Energy segment supplies positive displacement pumps, liquid ring vacuum pumps, compressors and integrated systems, engineered fluid loading and transfer equipment and associated aftermarket parts. Medical segment designs, manufactures and supplies medical equipment, laboratory vacuum and automated liquid handling end-markets The Company’s products are sold under a range of brands namely Gardner Denver, CompAir, Nash, Emco Wheaton, Robuschi, Elmo Rietschle and Thomas.

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